Rising Opposition to Restrictive Covenant Agreements Sparks Federal and State Actions: Impact on Companies and Employees Revealed
MILWAUKEE, WI – The use of restrictive covenant agreements by companies to safeguard their business interests is facing scrutiny from federal and state governments. Despite bipartisan efforts in Congress falling short, federal agencies and state legislatures are actively pursuing measures to limit the implementation of such agreements. In 2016, the Federal Trade Commission (FTC) and Department of Justice (DOJ) released their Antitrust Guidance for Human Resource Professionals, focusing on no-poaching and wage-fixing agreements that fall under antitrust law. This guidance allowed employers to defend their restrictive covenants by proving the necessity of protecting legitimate business … Read more